Four Oaks Fincorp Inc. in North Carolina has agreed to buy Nuestro Banco in Raleigh for about $2.7 million in stock.
The deal for the $16.8 million-asset, Hispanic-focused Nuestro is expected to close in the third quarter.
Nuestro opened in September 2007 and has never had a profitable quarter, losing a total of roughly $5.3 million, according to the Federal Deposit Insurance Corp. Regulators issued a cease-and-desist order against the bank in March.
The $957 million-asset Four Oaks also said Tuesday that first-quarter profits dropped 34% from a year earlier, to $988,000.
The acquisition of Nuestro would be Four Oaks' second. In December 2007, Four Oaks announced it would acquire the $58 million-asset LongLeaf Community Bank in Rockingham, N.C., for $13.4 million.
